The Justice Department approved the
filing of a P1.15-billion estafa case against Camp John Hay Development Corp.,
operator of the Camp John Hay facility in Baguio City, for alleged failure to
pay annual rent to the government, the head of state-owned Bases Conversion and
Development Authority said Wednesday.

Casanova

BCDA president Arnel Paciano Casanova
told reporters in a news briefing in the Bonifacio Global City, Taguig the
criminal case would help the agency investigate other deals that CJHDevCo had
entered into in the past years.

“This is a criminal case. They have
defrauded the government and misrepresented a number of deals that could have
added to government revenues. We see this as a major breakthrough as this will
pave the way for us to look into other lease contracts with locators within the
facility,” he said.

Casanova, citing the DoJ resolution,
said prosecutors had found probable cause to charge CJHDevCo chairman Robert
John Sobrepeña with the crime of estafa under Article 315 of the Revised Penal
Code.

CJHDevCo failed to pay the government
annual rent, citing reasons of financial incapability due to operational losses
amounting to P1.445 billion.

Casanova said the government should
have received P1.275 billion in rental for the years for 1998 to 2000, that led
to the first restructured agreement in 2000.

BCDA said the company concealed the
fact that it declared cash dividends totaling P928 million in the years 1998,
1999 and 2000.

The DOJ resolution said “CJHDevco
deliberately chose not to perform its rental obligations to BCDA despite
knowledge of such and existence of retained earnings and other revenue.”

It also declared the BCDA suffered
damage and prejudice in the amount P1.15 billion, whichrepresented the difference between the amount
it was entitled to receive under the lease agreement, if it had it insisted on
the performance of CJHDevCo’s rental obligations.

Casanova said BCDA’s serious efforts
to remove fraudulent businesses was a step in the right direction to promote
transparent and accountable business practices and level the playing field.

“This is our effort in leveling the
playing field. We uphold contracts and make those who breach accountable for
their actions,” he said.